ARE&M

Bets on AGM Battery Growth and Global Reach

, India’s second-largest auto battery manufacturer, is ramping up its presence in North America to double its export revenue share over the next five years. The company is building a local distribution network to deepen customer relationships and navigate tariff challenges. With exports currently contributing 13% of FY25 revenue, Amara Raja sees the US expansion as key to unlocking growth amid global competition and evolving battery technologies. 1. Strategic Expansion into North America - Focused on building a local distribution network to improve service and reduce delivery lags. - Aims to double export contribution from current 13% of revenue over five years. - Executive Director Harshavardhana Gourineni highlights the importance of customer proximity and tariff navigation. 2. FY25 Performance Snapshot - FY25 revenue: ₹12,405 crore, with 13% from exports. - Export push aligns with broader industry trend: India’s auto component exports hit $23 billion in FY25. - Despite sector growth, Amara Raja’s stock declined 19% YoY, underperforming the Nifty Auto index (+23%). 3. Technology Focus – AGM Batteries - Expansion strategy includes promoting AGM (Absorbent Glass Mat) battery technology, known for durability and performance. - AGM batteries are gaining traction in global automotive markets, especially in premium and electric vehicles. 4. Market Challenges and Opportunities - Tariffs and regulatory hurdles remain key challenges in the US market. - Building local infrastructure is expected to mitigate risks and enhance competitiveness. - Strong brand equity and operational scale support global ambitions. 5. Outlook and Strategic Positioning - Amara Raja’s US push reflects a long-term diversification strategy beyond domestic demand. - Success will depend on execution, technology leadership, and customer retention. - The company is positioning itself to capture a larger share of the global battery value chain.